Magazine article Mortgage Banking

One-Third of Mortgages Underwater as of 2Q 2009

Magazine article Mortgage Banking

One-Third of Mortgages Underwater as of 2Q 2009

Article excerpt

New data from First American CoreLogic Inc., Santa Ana, California, found that 32.2 percent of all mortgaged properties were in a negative-equity position as of the end of June 2009. The company said that negative-equity or near-negative-equity mortgages together account for nearly 38 percent of all residential properties with a mortgage nationwide. Near-negative equity is defined as being within 5 percent of a negative-equity position.

The number of mortgages that were underwater in the new report totaled more than 15.2 million. The aggregate property value for the loans in a negative-equity position was $3.4 trillion, according to the report. That dollar amount represents the property value at risk of default, according to First American CoreLogic.

In California alone, the report found that the homes where the borrower was in a negative-equity position had an aggregate property value of $969 billion. In Florida, the number was $432 billion, followed by New Jersey and Illinois at $146 billion each. …

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